Local officials concerned about conserved land's impact on taxes

“Benefits may be felt statewide,” says Judy East, "but the impact is felt locally." East, the executive director of the Washington County Council of Governments, spoke during a meeting held on July 23 at the Whiting Community Building to discuss the economic effect on local communities of the reduced property taxes allowed by state law for "conserved" lands. Meeting participants were clear about one thing: all were alarmed by the loss of tax revenue from these lands being partially withdrawn from municipal tax rolls by property owners who have taken advantage of legislation that permits the designation of land in exchange for restricting development. The 19 participants included elected officials from Lubec, Cutler, East Machias and Whiting and residents of Trescott; the gathering was initiated by Lubec Selectman Jason Evasius. Participants also included Rep. Will Tuell of East Machias and Senator Marianne Moore of Calais.
Lubec Assessor's Agent James Clark described how landowners can achieve tax reductions of up to 95% with little required in return beyond some level of public access. Possible tax reductions also include lands designated under Maine's Tree Growth tax program, which requires a current forestry plan and is intended to encourage the commercial harvesting of forest products, and is therefore a separate category where public use may be excluded. Tree Growth properties within Lubec are easily identified in the town's tax commitment, available on the town website. Conserved lands within Lubec range in size from individually owned lots of less than four acres to large tracts owned by land trusts encompassing hundreds of acres of waterfront, some of which have seen considerable infrastructure development consistent with the restrictions.
Municipal consent is not required prior to these designations taking place, which often results in surprise -- and outrage -- by officials who feel that the law has permitted them to be blindsided. These officials may then find themselves in the uncomfortable position of explaining to residents why property tax rate hikes are needed to continue funding town operations.
There was no argument during the meeting that there is no public benefit from those conserved lands that have been promoted as available. "It's good for your soul," says Clark, referring to the opportunities for outdoor recreation.
Clark pointed out that approximately 27% of all land in Lubec is either excluded from the tax rolls or has been placed in a conserved status. Lands excluded include state parks, federally owned properties, lands owned by charities and land owned by the town such as the large shorefront parcel listed as "Map 8, Lot 22" located largely behind the American Legion Hall. "If it were up to me," said Clark in an interview, "I'd sell that property to Butler [Conservation Fund] in a heartbeat. Then the town would at least get something for it." Conserved land, which does not include properties in Tree Growth, according to figures provided by Clark totals nearly 3,176 acres, or approximately 14.9% of the town's total of 21,280 acres.
Data provided by Clark show four land trusts and seven individuals owning conserved properties. These include Cobscook Shores Inc., owned by the Butler Conservation Fund, with 17 properties totaling 477.6 acres, Down East Coastal Conservancy with 17 properties totaling 383 acres, Maine Coast Heritage Trust with 12 properties totaling 1,933.5 acres and The Nature Conservancy with seven properties totaling 133.6 acres. The seven individuals own a total of nine conserved properties totaling 248 acres. The total assessed value of conserved properties in Lubec is $1,100,943; according to Clark's figures, if these properties were valued at fair market assessed value the total would be $10,980,050. According to Clark, this results in an approximately $180 "subsidy" per $100,000 of assessed value paid by property owners, or about 8% of the total tax burden.

Conservation organizations respond
Speaking during an interview, Carl Carlson, chief operating officer of Cobscook Shores Inc., describes the organization's plans for Red Point Park in Lubec, which currently remains under development. "The lighthouse brings in 30,000 people each year," he says. "We expect to bring in 60,000 and to give them a reason to stay here longer and spend money with local businesses," through their outdoor recreation program that has already provided kayak instruction to local children. The group operates similar centers in other parts of Maine, New York and South Carolina.
Regional manager Arthur Smallidge was asked about the tax exempt status the park recently established, despite earlier statements made to the Lubec Select Board that the Butler organization intended to "pay some taxes." He replied that the change was based on legal advice, supported by their status as a charitable organization. Smallidge also cited construction delays as causing the park's opening date to be pushed back to 2020. Project Manager Charlie Howe and local manager Randy Hall were also present during the interview, which was held in their new facility.
In an interview, Jeff Romano, public policy manager for the Maine Coast Heritage Trust (MCHT), spoke to the difficulties in providing "hard numbers" of usage or tangible benefits. "People don't always sign in" at Hamilton Cove, for instance, so actual counts are understated. "Members of my own family come up," he added, then rattled off a list of local restaurants and lodging facilities that they patronize. He says, "Lubec has become a popular destination," stating that he has heard as much from local business owners as well as state‑level tourism promoters. Lubec voters supported the most recent bonding effort for the Land for Maine's Future Fund by 55%, he observed. Figures provided by Romano show that, at the time MCHT data was compiled, land designated for Tree Growth accounted for nearly 17% of total Lubec acreage.
Nancy Sferra, director of stewardship for The Nature Conservancy, in an interview pointed out that their holdings were primarily two islands, the larger of which is Long Island in South Bay, which are held as wildlife sanctuaries and are open for recreational usage and are not practical for development purposes. "We try to make shoreline access available to all," she said, "not just the lucky few who can afford it.

Suggestions made for addressing issue
After sometimes heated discussion, most attendees at the meeting agreed that the real issue is not that organizations and individuals take advantage of tax savings as permitted by law -- it is that the legislature has not fairly provided for the local impact of these designations. "Most reasons given for projects are state or regional -- not town," said East. One participant asked if it were possible to "put a cap" on land trusts, leading East to observe, "Lubec cannot get this passed by itself." She suggested that a better approach would be a bill that establishes a task force to "evaluate across the board, to hear how Cutler, Lubec, Whiting and others are being hit."
In 2018 the Land Conservation Task Force was assembled primarily of representatives of various land trusts -- the report did not identify any municipal officers as either members or panelists. The 28‑page final report was issued earlier this year and included many observations of the public benefits of conserved lands as well as proposals to accelerate the process. The report states, "Facing cuts to state revenue sharing and education funding, municipalities are under increasing financial pressure to provide existing services and balance their budgets without increasing property taxes. In some towns, the state's inability to meet its financial obligations has heightened concerns about the impact of conserved lands on municipal revenues." To address this matter, the report suggests, "Land trusts should work closely with communities to plan for future land conservation and community recreational assets and should support policies that help municipalities address their fiscal pressures such as bolstering state revenue sharing and educational funding." No specific suggestions were offered. A full copy of the report is available at <www.maineconservationtaskforce.com>.
Rep. Tuell suggested that an important part of the issue is "revenue sharing should be at the full 5%," pointing out that the withdrawal of state support hurts towns regardless whether it be school funding, revenue sharing or reimbursement for legislated tax reductions. He then pointed out that at this point in the legislative cycle getting the legislature to take effective action would be unlikely. East agreed with this and suggested that establishing a task force to gather data allowing the next legislature to take effective action would be the right approach. "Land trusts will help with this," she says. "They face this all the time."
"You need to have allies in this," East said, pointing out, "We're not going to get this going by vilifying people."
In conclusion, Smallidge stated, "The region is in transition. The sardine industry isn't coming back. People will have to get used to change."